What Is a B Corporation?

The traditional purpose of any capitalist company is making quantifiable profit -  that is, money. But what if ‘profit’ couldn’t be accountable in figures? What if a company rendered associated benefits to its employees, the community and the environment aside from the monetary profits for its shareholders?

That is the philosophy behind Benefit Corporations.

Since their inception in 2010, experience has confirmed that, in an environment of increasing social and ecological consciousness, consumers value companies that offer socially conscious and environmentally friendly products.

Even the relatively higher prices of these products do not represent a negative impact for their sales, because the public see an added value in products that comply with their own ethical standards.

Guiltless pleasure: organic and ethical chocolate

Aside from legal and business benefits (such as being able to stay true to their mission in spite of changing ownership.), the status of Benefit Corporation helps for-profit companies make a positive impact on society and the environment without having to sacrifice earnings or their original philosophy, thus creating a balance between profit and values.

However, although many products advertise themselves as eco-friendly and socially-conscious, only a certification from a trusted organization truly validates such claims.

This is where the ‘B Corp Certification’ comes into play.

This certification assures the consumers that the products they buy follow ethical norms and regulated production procedures that are environmentally-friendly and socially responsible. This is specially helpful in areas where these norms aren’t yet implemented or aren’t surveyed properly.   

However, there’s an important distinction to be made between a ‘B Corporation’ and ‘B Corp Certification’.

A company can be classified as a ‘B Corporation’ without being certified as a ‘B Corp’ and vice-versa.

This is because ‘B Corp’ is a legal status conferred by state law for companies registered within the United States. On the other hand, the ‘B Corp Certification’ is conferred by an independent organization, and although it carries no legal weight, it can be bestowed to companies registered outside the boundaries of the United States, and truly certifies that a product follows the strict standards of Benefit Corporations.

In order to gain the B Corp Certification, the companies must apply for evaluation and prove, among other things, that they are environmentally conscious and socially responsible. That is, that all along their production process they implement firm actions to lessen their environmental impact while producing a positive impact in the community.

The companies that have earned the seal are re-evaluated regularly and must keep their standards in order to remain certified.

The ‘B Corp Certification’ seal is independent from the ‘B Corp’ legal status, and it’s administrated by the non-profit B-Lab.

To this date, there are over two thousand B Corp Certified companies worldwide, in the United States, Canada, Australia, South Africa, the Netherlands, the United Kingdom, Spain, France, Afghanistan, Argentina, Brazil, Chile, Uruguay and Colombia, among many other countries.

Four outstanding examples of ‘B Certified’ companies are Patagonia, Eileen Fisher, Natura and Stonyfield.

Famous for their line of outdoor clothing and associated products, Patagonia donates 1% of its profits to environmental groups, is fair-trade certified and has issued principles for the treatment of animals and best land-use practices to ensure that the source of their raw materials are sustainable, responsible and cruelty-free. In addition, Patagonia has standards of protection of immigrant workers, which prevents any third party involved in their line of production to exploit workers.

The women’s fashion company Eileen Fisher has no less stringent ethical standards. In addition to being fair-trade certified, the firm uses organic and responsible fibres and certified dyeing for all its fabrics. The company has a director of social consciousness, and ethical labour standards that are monitored worldwide in all of the third-party workshops of their production line, in order to prevent slavery and human trafficking. 

The Brazilian cosmetics company Natura is another B Corp certified company that uses no animal testing for its carbon-neutral products, is an advocate for the Amazon forest and fosters a holistic support for its consultants, from their training to their social well-being.  

From its humble beginnings in 1983 as a farming school producing organic dairy products, Stonyfield has been a pioneer of B companies. Aside from using no artificial hormones, toxic persistent pesticides, antibiotics or GMOs, Stonyfield makes yogurt cups from plant sources (as opposed to petrol-based plastic), uses sources of renewable energy in their facilities, and through its business supports a network of local organic family farmers and the organic maintenance of thousands of acres of farm land.  

Although these examples are from large, well-known companies, there are many small local companies and services that also adhere to the precepts of the B Corp Certification and are making a positive impact on their communities. To find the closest one to you, go to: https://bcorporation.net/directory

B Corp Certified products may be a little bit more expensive, but this difference makes a huge positive impact on the environment and in the society. By supporting these companies, you are effectively contributing to a better world.

To Learn More

For more information about the B Corp Certification, their guidelines and the companies that have received this certification, visit the following link: https://bcorporation.net/about-b-corps

Sources: B Corp Certification, Benefitcorp.net, SistemaB.org, Wikipedia.